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Consumer Durable Choice and the Demand for Electricity - 1st Edition - ISBN: 9780444877666, 9781483294667

Consumer Durable Choice and the Demand for Electricity, Volume 155

1st Edition

Author: J.A. Dubin
eBook ISBN: 9781483294667
Imprint: North Holland
Published Date: 1st January 1985
Page Count: 284
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Table of Contents

Consumer Durable Choice and Utilization. A Heating and Cooling Load Model for Single-Family Detached Dwellings. Estimation of a Nested Logit Model for Appliance Holdings. Rate Structure and Price Specification in the Demand for Electricity. Two-Stage Estimation Methods for the Switching Regime Model with Known Regimes. Estimation of the Demand for Electricity and Natural Gas from Billing Data. Appendices. References. Index.


This book develops the theory of durable choice and utilization. The basic assumption is that the demand for energy is a derived demand arising through the production of household services. Durable choice is associated with the choice of a particular technology for providing the household service. Econometric systems are derived which capture both the discrete choice nature of appliance selection and the determination of continuous conditional demand.

Using the National Interim Energy Consumption Survey (NIECS) from 1978, a nested logit model of room air-conditioning, central air-conditioning, space-heating and water heating is estimated. The estimated probability choice model is used to forecast the impacts of proposed building standards for newly constructed single family detached residences. A network thermal model provides unit energy consumptions for alternative heating and cooling systems across time. Monthly billing data matched to NIECS is analyzed permitting seasonal estimation of the demand for electricity and natural gas by households.

The theory of price specification for demand subject to a declining rate structure is reviewed and tested. Finally, consistent estimation procedures are used in the presence of possible correlation between dummy variables indicating appliance ownership and the equation error. The hypothesis of simultaneity in the demand system is tested.

Conditional moments in the generalized extreme value family are derived to extend discrete continuous econometric systems in which discrete choice is assumed logistic. An efficiency comparison of various two-stage consistent estimation techniques applied to a single equation of a dummy endogenous simultaneous equation system is undertaken and asymptotic distributions are derived for each estimation method.


No. of pages:
© North Holland 1985
1st January 1985
North Holland
eBook ISBN:


@qu:... the book provides a detailed treatment of specification and estimation discrete/continuous models of household demand for each fuel type, not just electricity. @source: Journal of Political Economy, 1986 @qu:This study is in the best tradition of applied econometrics; it will appeal to a variety of specialists and to those with just a general interest in electricity demand. ... This book will appeal to a wide variety of readers, whether they are theorists, econometricians, or practical analysts of electricity demand. It is a most welcome addition to the literature. @source: Lester D. Taylor in Journal of the American Statistical Assocation, 1987

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About the Author

J.A. Dubin